Blog Flux Directory Subscribe in NewsGator Online Subscribe with Bloglines Blog directory
And, yes, I DO take it personally: Roubini: no Glass-Steagall-Lite
Mandy: Great blog!
Mark: Thanks to all the contributors on this blog. When I want to get information on the events that really matter, I come here.
Penny: I'm glad I found your blog (from a comment on Think Progress), it's comprehensive and very insightful.
Eric: Nice site....I enjoyed it and will be back.
nora kelly: I enjoy your site. Keep it up! I particularly like your insights on Latin America.
Alison: Loquacious as ever with a touch of elegance -- & right on target as usual!
"Everybody's worried about stopping terrorism. Well, there's a really easy way: stop participating in it."
- Noam Chomsky
Send tips and other comments to: /* ---- overrides for post page ---- */ .post { padding: 0; border: none; }

Tuesday, May 18, 2010

Roubini: no Glass-Steagall-Lite

when i hear the voice of reason, i recognize it immediately... it's simple, straightforward and completely understandable by even the most brain-cell challenged among us... it's also a pure breath of fresh air amidst all the spin and propagandized crap we're routinely fed...
We must be capable of going beyond the Volcker Rule, which is essentially Glass-Steagall-Lite. We need to go all the way and implement the kind of restrictions between commercial banking and investment banking that existed under Glass-Steagall.


If you look at the cases against Goldman Sachs and Morgan Stanley, leaving aside whether there was any fraud or illegal activity—that's for a court to decide—there is still a fundamental conflict of interest. These institutions are always on every side of every deal. That's an inherent conflict of interest that cannot be addressed with Chinese walls [internal company barriers between different aspects of its business].

There are no benefits from these economies of scale and scope, as we've seen from the disasters at Citigroup, AIG and others. And there are massive conflicts of interest. So I would separate all of these financial businesses under separate institutions, and I would go back to the kind of restrictions that we had under Glass-Steagall.

yes, nouriel, but that would put restrictions on unfettered greed and that is something our super-rich elites will simply not allow...

Labels: , , , , , , ,

Submit To Propeller

And, yes, I DO take it personally home page